[Edaily Reporter JAEMIN SONG ] LG Corp., the holding company of the LG Group, nearly doubled its operating profit in the second quarter of this year compared to the same period last year, driven by improved performance at its electronics affiliates, including LGELECTRONICS and LG Innotek.

LG Corp. announced on the 13th that it recorded consolidated revenue of 2.1396 trillion won and operating profit of 533 billion won in the second quarter of this year. These figures represent increases of 19.0% and 92.5%, respectively, compared to the same period last year. Compared to the previous quarter, revenue rose 18.8% and operating profit increased 28.8%.

The recovery in earnings at its electronics affiliates was reflected in the holding company’s results, driving the increase in profits. Second-quarter equity in earnings of affiliates totaled 348.1 billion won, a 274.7% increase from the 92.9 billion won recorded in the same period last year. In addition to improved performance at LGELECTRONICS and LG Innotek, equity in earnings related to LG CNS—which had posted a loss in the second quarter of last year—also returned to a profit.

LGELECTRONICS posted second-quarter revenue of 22.7398 trillion won and operating profit of 1.2750 trillion won. These figures represent year-over-year increases of 10.9% and 99.3%, respectively. LG Innotek also posted revenue of 5.9317 trillion won and operating profit of 245.8 billion won, up 29.8% and 114.8%, respectively. Expanded sales of home appliances and premium TVs, along with increased demand for optical solutions and semiconductor substrates, drove these results.

LG Corp.’s revenue from trademarks and leasing stood at 123.2 billion won, up 3.8% from the same period last year. Revenue from consolidated subsidiaries, including LG CNS, rose 5.2% to 1.6683 trillion won. LG CNS, a major consolidated subsidiary, posted second-quarter revenue of 1.5208 trillion won, a 4.2% increase, but its operating profit fell 9.2% to 127.9 billion won.

Second-quarter profit from continuing operations before income tax expense was 568.7 billion won, up 110.5% from the same period last year. Net income rose 118.6% to 533.8 billion won, while net income attributable to owners of the parent company increased 127.6% to 465.7 billion won.

Cumulative revenue for the first half of the year was 3.9402 trillion won, a 5.5% increase compared to the same period last year. Operating profit rose 3.5% to 946.8 billion won, and net income increased 7.1% to 912.8 billion won. Net income attributable to owners of the parent company increased 2.6% to 805.5 billion won.

Profitability varied by business group. The operating profit margin for the electronics group rose from 3.3% last year to 5.6% this year, and the telecommunications and services group also improved from 7.3% to 7.9%. In contrast, the chemicals group’s operating profit margin fell from 4.0% to 2.6% due to factors such as a decline in electric vehicle battery production and stabilization and quality-related costs associated with the transition of the energy storage system (ESS) production line.